Boot on the other foot

[MondeoST24]

If i'm overdrawn with a bank for £105, and there are three charges on the account for 3 x £35. I am just as well writing and saying I contest this balance is made up of unlawful charges therefore I have no intention of paying it, please either write the amount off or refer the matter to county court in a timely fashion.

 

Are there any pitfalls to this approach?

[dave]

Only for the bank I would imagine.

 

Remind them that the amount is now in dispute and under 13.6 of the banking code they will not give information about this to a credit reference agency.

 

Also, let them know that if they do, you can only see that as defamatory and will take appropriate action.

[Seminole]

The only ones I can think of are that it leaves you unable to use the account and there is a risk that the bank will default the account but not take you to court. This would screw your credit file.

[richardc]

I like it But see if someone else can see any problems with it.

[Spiceskull]

It begs the question - if your account was only ever overdrawn due to charges...would the bank lodge a claim in court? And if so, there must be a threshold for this...

 

See the steps I took to get my bank charges back.

Spiceskull v HSBC.

Thank you Consumer Action Group.

Read my blog.

 

[lee6370]

Dave, excellent info on the banking code (13.6) just phoned lloyds to ensure they would not record any information with a credit reference agency whilst my account was in dispute and was told yes they would.

 

Quoted section 13.6, which seemed to confuse him, so off he went to check with his supervisor, and his supervisor confirmed that yes they would record info with the credit reference agency, so ask him once how he could justify subcribing to the code, did they just select the parts that they liked, off he went again to talk with his supervisor, and on his return told me "my supervisor is just checking the banking code, he'll call you back. Clause 13.6 did you say?".

 

Excellent, not phoned me back yet, not sure if he will.

[lee6370]

Not sure if i should start a new post. Just spoken to lloyds at lengh, according to them they can and will enter information against you to a credit reference agency if you are in arrears.

 

Now the banking code as Dave pointed out states "We may give information to credit reference agencies about the personal debts you owe us if:

• you have fallen behind with your payments;

• the amount owed is not in dispute; and

• you have not made proposals we are satisfied with

for repaying your debt, following our formal demand."

 

Now i read this to mean if you are in dispute they will not enter any information, however lloyds point out that 'point 1' applies i.e. if you have fallen behind, regardless of whether there is a dispute they can and will enter information against you?

 

So the question is what can i do about this?

[Maxie]

I would say read this

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?t=2503

 

Second, I can see what your saying, but in doing so the bank could ruin your credit file. Better to pay what was the overdrawn amount and then leave the debit balance and issue proceedings for 3 x £35 and ask that the bank pay the money direct to the account not you, so the accoutn shows a balance of £0.00

 

This avoid credit reporting, and if they do you might have a case for having some adverse info removed.

[lee6370]

Problem is not sure how much the charges are (requested them on 8th March, still waiting), so i either pay and then claim it back, or dispute the amount and have them ruin my credit file.

 

My point is they are recording information that maybe untrue, i.e. i haven't missed payments, because i dont owe them any money, it's all unlawful charges, if this is the case what can i do?

 

All the bank will do is remove the information from my file should i prove that i don't owe the money, but why should they put it on there in the first place if it's untrue? The banking code is not worth the paper it's written on but there must be something i can do, i'm more than happy to take them to court, regardless of the cost.

 

Just had enough of them doing what they like when they like.

[MondeoST24]

Would there be scope to sue them for defamation or libel?

 

Dont know much about this area of law, or how you would go about it.

[Maxie]

Would there be scope to sue them for defamation or libel?

 

Dont know much about this area of law, or how you would go about it.

 

Don't go near anything like this - its just wouldn't fly.

[lee6370]

Spent a lot of time researching this and you can sue for defamation, however if your credit rating is not 100% perfect to start with then it's hard to prove how the banks have made it worse. Also the banks will argue that as a prudent lender it must record this information, and they have to balance their customers needs against this, and whatever I think of this it will hold water in court.

 

So just have to take it on the chin and try and get any adverse information removed as part of any settlement.

 

I will however take great pleasure in getting my money back, they really don't help themselves.

[MondeoST24]

This topic was closed on 03/07/19.

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